China’s Regulatory Crackdown on Property to Ease, Tech Firms Remain Under Pressure

China’s common prosperity policy will not only aim to close the widening wealth gap but it will also shape the country’s regulatory approach, with some sectors seen crucial for the economy getting more support. As part of the push, it is expected that the failing property sector, accounting for a quarter of Chinese economy, will get more regulatory support. Crackdowns on internet firms will possibly remain due to Beijing seeing it as the source of disorderly capital expansion.

A regulatory divergence is expected in China’s annual parliamentary meeting, which starts on Saturday. Policymakers could unveil more stimulus to boost slowing economic growth.

The property sector has seen some ease of rules since the beginning of this year. Debt ridden property developers could find some room to operate again after coming on the brink of collapse. Beijing’s move underlines the push to re-accelerate economic growth as war in Ukraine adds more uncertainty.

Last year, China had imposed a broad regulatory crackdown on a wide range of industries, leaving both small and large companies operate in an uncertain environment as part of Xi’s “common prosperity” push. Technology and property sectors were especially hit hard, seeing revenues plunge and huge sell-off in their stocks and bonds.

However, Beijing eased the crackdown on property sector since the end of last year and has taken a number of initiatives to help revitalize the industry. Part of the effort has included making it easier for large and state owned enterprises to raise funds and allowing local governments to lower mortgage rates and down payment ratios.

The ease of crackdown was most likely derived from the regulators’ concern about the knock on effects on the broader economy.

Meanwhile, technology sector has seen even tighter regulations, affecting everything from overseas listings to direct bans on some industries along with a continuous stream of penalties.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Italy, Spain Explore the Construction of an Offshore Gas Pipeline

Italian gas group Snam and Spain’s Enagas made a deal to study the construction of an offshore pipeline between the two countries, as Europe ramps up efforts to diversify its energy supply mix and phase out Russian gas.

Australia’s Woodside Ships First LNG to Europe Since 2009

Australian petroleum exploration and production company Woodside announced on Monday that it had shipped first LNG cargo from Australia’s North West Shelf project to Europe for the first time since 2009. The LNG’s German buyer Uniper said additional LNG cargoes from Australia would help the nation replace pipeline gas supplies lost from Russia.

U.S. Department of Energy to Boost Nuclear Plants with $6 Billion Program

The U.S. Department of Energy (DoE) said that it looks for input from utilities, advocates and communities as it tries to develop a $6 billion program to help struggling nuclear power plants. The bipartisan bill passed last year and gave the DoE green light to create the Civil Nuclear Credit Program. 

Stay informed

error: This content is protected !!